GAO Report Details U.S. Strategic Petroleum Reserve Risks

The Government Accountability Office warned Congress this week that the U.S. Strategic Petroleum Reserve faces risks of operational failure because of aging infrastructure, Washington Examiner reported. The performance audit, conducted from February 2024 to May 2026, found that a $1.4 billion life-extension project approved in late 2016 had exceeded its cost and schedule by May 2026, prompting the Department of Energy to reduce the scope of repairs.

Upgrades at the West Hackberry facility in Louisiana were removed entirely from the project. The report noted that the Department of Energy first identified in 2014 that much of the reserve's infrastructure had reached or exceeded its design life. DOE officials told the GAO that the infrastructure is being held together with "Band-Aids" and that they are unsure how long it will hold.

U.S. crude oil inventories stood at 331.2 million barrels as of Monday. -Iran ceasefire by launching drone attacks on ships in the Strait of Hormuz. A U.S. official said the Islamic Revolutionary Guard Corps struck a cargo ship with a drone yesterday, after which the International Maritime Organization halted evacuation operations.

Trump wrote on Truth Social that one drone hit an upper deck of a large cargo ship, causing damage, but the vessel was able to proceed; U.S. forces downed three additional drones. Brent crude oil fell 4.42 percent to $71.93 per barrel just before 3 p.m.

EDT today. West Texas Intermediate dropped 3.77 percent to $69.21 per barrel. Baker Hughes reported that the total U.S. oil and gas drilling rig count rose by 10 for the week ending today, reaching 573 active rigs, the highest level since May 2025.